Size of India Web 2.0 market is 1.5 million users
So says IDC India.
As per an IDC release ,
Excluding the established, large global players like Orkut, YouTube, Flickr, Wikipedia et al, IDC estimates that Web 2.0 start-ups have a combined user base in India of around 15 lakh users, after eliminating overlaps.
22 million Internet users in India.
About 9 million broadband subscribers in India.
Less than 10% of Indian Internet users make up the target audience for India Web 2.0 startups.
Is this the reason why VC’s are shying from early stage funding for Web 2.0 startups ?
What do you think ?
March 3rd, 2008 at 8:10 pm
IDC is obviously wrong. I dont want to digg to much into, but couple of links:
http://www.internetworldstats.com/asia.htm
http://www.iamai.in/PRelease_detail.aspx?nid=1562&NMonth=12&NYear=2007
If you search around a bit you will come to know that Orkut has 20-30% users from India. According to some 2006 stats, Orkut had 60 millions users. That makes atleast 10 million users from India in the last year itself. Keep in mind i am not talking about people of Indian origin based out of US, UK, India,….. It is the users actually located in India.
Want more juice? Here is another link: http://www.admob.com/marketing/pdf/mobile_metrics_jan_08.pdf
Look up the number of mobile ads originating from India in PDF……. Those numbers are definitely not fake.
March 3rd, 2008 at 8:41 pm
Vivek,
I guess you missed the part in the IDC release where it says:
Excluding the established, large global players like Orkut…
1.5 mill is the user base for Web 2.0 sites excluding orkut, youtube, flickr etc.
March 4th, 2008 at 12:40 am
Yeah i did miss that point. But again that is a moot point to discuss. It is like trying to count web users in US who dont use Google,Yahoo, Facebook, Wordpress, and the rest of the top 20 web properties. How many users are left out? Maybe 0. Ah, then we should not have any investment at all in that case.
March 5th, 2008 at 5:54 am
I share the same thinking as Vivek. There is always an overlap between users using the top 10/20 websites and the ones using the others budding web 2.0 websites. In fact it is the former set of users who are more likely to use the new Web 2.0 services. There can not be an exclude statement here. There definitely is an overlap and that overlapping area and its growth potential is what attracts the money and talent. Cheers!
March 5th, 2008 at 11:59 am
@vivek @ shabbir,
the release talks of excluding the international web 2.0 sites, not the top 10-20 web properties.
i use google, yahoo. but i dont use facebook or youtube (if you discount a random,chance visit, that is).
if i were in pune, i might end up using burrp and bookeazy. you see what i mean ?
@shabbir - i see your line of questioning and its definitely very valid.